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Moody’s Investors Services is warning that the state’s new pension-smoothing plan is a “a stopgap with long-term risks” that could endanger the state’s pension fund and the credit of local governments.

The plan, part of the state budget approved last month, allows for local governments and schools to essentially pay a flat rate for pension costs over 12 years, avoiding the steep cost increases that the municipalities have faced.

Comptroller Thomas DiNapoli has signed off on the plan, and the state’s Teacher Retirement System is meeting Tuesday to do the same. Moody’s says in its weekly credit outlook that the ...

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